DTN Midday Grain Comments 11/08 11:06

DTN Midday Grain Comments 11/08 11:06 Corn, Wheat Futures Lower at Midday; Soybeans Narrowly Mixed Corn futures are 4 to 5 cents lower at midday Tuesday; soybean futures are narrowly mixed; wheat futures are 1 to 7 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 4 to 5 cents lower at midday Tuesday; soybean futures are narrowly mixed; wheat futures are 1 to 7 cents lower. The U.S. stock market is firmer with the DOW up 240 points. The U.S. Dollar Index is 55 points lower. Interest rate products are firmer. Energies are weaker with crude down .90 and natural gas down .70. Livestock trade is mostly weaker. Precious metals are firmer with gold up 38.00. CORN: Corn futures are 4 to 5 cents lower at midday as trade continues to grind into the lower end of the range with little fresh bullish news and position-squaring ahead of Wednesday's WASDE report. WASDE is expected to show yield at 171.9 bushels per acre (bpa) with carryout at 1.207 billion bushels (bb) -- higher than last month on demand slowdowns. The daily wire did show some life Tuesday with 338,600 metric tons (mt) sold to Mexico. Ethanol margins remain rangebound with corn values and driving demand choppy short term. Harvest should continue to push toward the homestretch. The weekly Crop Progress report showed progress at 87% versus 76% on average. Some fall fertilizer application is underway, with potential improvement in conditions with cooler and wetter temps coming late in the week and next week. Basis will likely remain mixed with river issues persisting while the market works to move bushels west with rains hopefully boosting navigation possibilities near term. On the December chart, trade is back below the 20-day moving average at $6.86 with the lower Bollinger Band at $6.71 as further support, which we are testing. Further resistance is at the $6.98 upper Bollinger Band. SOYBEANS: Soybean futures are narrowly mixed with trade holding the upper end of the range ahead of the report. Export action picked up on the daily report with Mexico buying 144,000 mt, China, 138,700 mt, and unknown 132,000. Meal is 2.00 to 3.00 higher and oil is 95 to 105 points lower mt. On the WASDE report, trade is looking for 49.8 bpa on yield unchanged from last month, with carryout at 212 million bushels (mb), up slightly from last month. Basis may ease if board strength is sustained, and late week rains add to river improvement with some gains in flow to start the week. On the weekly Crop Progress report, harvest showed at 94% versus 86% on average. Trade will see increasing focus on South American weather coming forward with mixed forecasts, along with a focus on any short-term shipping disruptions in Brazil, which likely keeps action volatile. On the January chart, trade is well above the 20-day moving average at $14.12 with the Upper Bollinger Band just above current action at $14.65, and the fresh high at $14.69. WHEAT: Wheat futures were 1 to 7 cents lower overnight with early gains fading as trade continues to watch weather and political developments and action consolidates just above nearby support levels. Spread action is a bit firmer to start as well. Fresh political developments will be watched for with the initial end date for the Ukraine grain shipping corridor coming up midmonth. Carryout is expected to be at the 578 mb level on Wednesday's WASDE, up slightly from last month. The Plains could see better moisture in the west in the second week with significant ground to make up and snow potential for some of the driest areas. Weekly Crop Progress showed planting at 92% versus 90% on average, with 73% emerged versus 74% on average; the crop was rated 30% good to excellent and 34% poor to very poor, up 2% on the week. Argentina continues to struggle with dryness while Australia sees flooding. On the chart, KC December action is back above the 20-day moving average at $9.51 with the lower Bollinger band at $9.18 as further support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.